A pension is a fund into which a sum of money is added during an employee's employment years, from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension may be a "defined benefit plan" where a fixed sum is paid to a person, or a "defined contribution plan" under which a fixed sum is invested and becomes available at retirement age. Pensions should not be confused with severance pay; the terms "retirement plan" and "superannuation" tend to refer to a pension granted upon retirement of the individual. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Called retirement plans in the United States, they are known as pension schemes in the United Kingdom and Ireland and superannuation plans in Australia and New Zealand. Retirement pensions are in the form of a guaranteed life annuity, thus insuring against the risk of longevity. A pension created by an employer for the benefit of an employee is referred to as an occupational or employer pension.
Labor unions, the government, or other organizations may fund pensions. Occupational pensions are a form of deferred compensation advantageous to employee and employer for tax reasons. Many pensions contain an additional insurance aspect, since they will pay benefits to survivors or disabled beneficiaries. Other vehicles may provide a similar stream of payments; the common use of the term pension is to describe the payments a person receives upon retirement under pre-determined legal or contractual terms. A recipient of a retirement pension is known as a retiree. A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement, it is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for use as a retirement income. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes.
Pension plans are therefore a form of "deferred compensation". A SSAS is a type of employment-based Pension in the UK; some countries grant pensions to military veterans. Military pensions are overseen by the government. Ad hoc committees may be formed to investigate specific tasks, such as the U. S. Commission on Veterans' Pensions in 1955–56. Pensions may extend past the death of the veteran himself, continuing to be paid to the widow. Many countries have created funds for their citizens and residents to provide income when they retire; this requires payments throughout the citizen's working life in order to qualify for benefits on. A basic state pension is a "contribution based" benefit, depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America. Many countries have put in place a "social pension"; these are tax-funded non-contributory cash transfers paid to older people. Over 80 countries have social pensions.
Some are universal benefits, given to all older people regardless of income, assets or employment record. Examples of universal pensions include New Zealand Superannuation and the Basic Retirement Pension of Mauritius. Most social pensions, are means-tested, such as Supplemental Security Income in the United States of America or the "older person's grant" in South Africa; some pension plans will provide for members in the event they suffer a disability. This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age. Retirement plans may be classified as defined benefit or defined contribution according to how the benefits are determined. A defined benefit plan guarantees a certain payout at retirement, according to a fixed formula which depends on the member's salary and the number of years' membership in the plan. A defined contribution plan will provide a payout at retirement, dependent upon the amount of money contributed and the performance of the investment vehicles utilized.
Hence, with a defined contribution plan the risk and responsibility lies with the employee that the funding will be sufficient through retirement, whereas with the defined benefit plan the risk and responsibility lies with the employer or plan managers. Some types of retirement plans, such as cash balance plans, combine features of both defined benefit and defined contribution plans, they are referred to as hybrid plans. Such plan designs have become popular in the US since the 1990s. Examples include Cash Pension Equity plans. A traditional defined benefit plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in the United States are a type of defined benefit pension plan. Traditionally, defined benefit plans for employers have been administered by institutions which exist for that purpose, by large businesses, or, for government workers, by the government itself. A traditional form
George W. Bush
George Walker Bush is an American politician and businessman who served as the 43rd president of the United States from 2001 to 2009. He had served as the 46th governor of Texas from 1995 to 2000. Bush was born in New Haven and grew up in Texas. After graduating from Yale University in 1968 and Harvard Business School in 1975, he worked in the oil industry. Bush married Laura Welch in 1977 and unsuccessfully ran for the U. S. House of Representatives shortly thereafter, he co-owned the Texas Rangers baseball team before defeating Ann Richards in the 1994 Texas gubernatorial election. Bush was elected President of the United States in 2000 when he defeated Democratic incumbent Vice President Al Gore after a close and controversial win that involved a stopped recount in Florida, he became the fourth person to be elected president while receiving fewer popular votes than his opponent. Bush is a member of a prominent political family and is the eldest son of Barbara and George H. W. Bush, the 41st president of the United States.
He is only the second president to assume the nation's highest office after his father, following the footsteps of John Adams and his son, John Quincy Adams. His brother Jeb Bush, a former Governor of Florida, was a candidate for the Republican presidential nomination in the 2016 presidential election, his paternal grandfather, Prescott Bush, was a U. S. Senator from Connecticut; the September 11 terrorist attacks occurred eight months into Bush's first term. Bush responded with what became known as the Bush Doctrine: launching a "War on Terror", an international military campaign that included the war in Afghanistan in 2001 and the Iraq War in 2003, he signed into law broad tax cuts, the Patriot Act, the No Child Left Behind Act, the Partial-Birth Abortion Ban Act, Medicare prescription drug benefits for seniors, funding for the AIDS relief program known as PEPFAR. His tenure included national debates on immigration, Social Security, electronic surveillance, torture. In the 2004 presidential race, Bush defeated Democratic Senator John Kerry in another close election.
After his re-election, Bush received heated criticism from across the political spectrum for his handling of the Iraq War, Hurricane Katrina, other challenges. Amid this criticism, the Democratic Party regained control of Congress in the 2006 elections. In December 2007, the United States entered its longest post-World War II recession referred to as the "Great Recession", prompting the Bush administration to obtain congressional passage of multiple economic programs intended to preserve the country's financial system. Nationally, Bush was both one of the most popular and unpopular U. S. presidents in history, having received the highest recorded presidential approval ratings in the wake of the 9/11 attacks, as well as one of the lowest approval ratings during the 2008 financial crisis. Bush finished his term in office in 2009 and returned to Texas, where he had purchased a home in Dallas. In 2010, he published Decision Points, his presidential library was opened in 2013. His presidency has been ranked among the worst in historians' polls that were published in the late 2000s and 2010s.
However, his favorability ratings with the public have improved after leaving office. George Walker Bush was born on July 6, 1946, at Yale–New Haven Hospital in New Haven, while his father was a student at Yale, he was his wife, Barbara Pierce. He was raised in Midland and Houston, with four siblings, Neil and Dorothy. Another younger sister, died from leukemia at the age of three in 1953, his grandfather, Prescott Bush, was a U. S. Senator from Connecticut, his father was Ronald Reagan's vice president from 1981 to 1989 and the 41st U. S. president from 1989 to 1993. Bush has English and some German ancestry, along with more distant Dutch, Irish and Scottish roots. Bush attended public schools in Midland, until the family moved to Houston after he had completed seventh grade, he spent two years at The Kinkaid School, a prep school in Piney Point Village in the Houston area. Bush attended high school at Phillips Academy, a boarding school in Andover, where he played baseball and was the head cheerleader during his senior year.
He attended Yale University from 1964 to 1968. During this time, he was a cheerleader and a member of the Delta Kappa Epsilon, serving as the president of the fraternity during his senior year. Bush became a member of the Skull and Bones society as a senior. Bush was a rugby union player and was on Yale's 1st XV, he characterized himself as an average student. His GPA during his first three years at Yale was 77, he had a similar average under a nonnumeric rating system in his final year. In the fall of 1973, Bush entered Harvard Business School, he graduated in 1975 with an MBA degree. He is the only U. S. president to have earned an MBA. Bush was engaged to Cathryn Lee Wolfman in 1967, but the engagement fizzled out. Bush and Wolfman remained on good terms after the end of the relationship. While Bush was at a backyard barbecue in 1977, friends introduced him to Laura Welch, a schoolteacher and librarian. After a three-month courtship, she accepted his marriage proposal and they wed on November 5 of that year.
The couple settled in Texas. Bush left his family's Episcopal Church to join his wife's United Methodist Church. On November 25, 1981, Laura Bush gave birth to fraternal twin daughters and Jenna. Prior to getting married, Bush struggled with multiple episodes of alcohol abuse. In one instance on September 4, 1976, he was pulled over near his fami